Bango Regulatory News (BGO)

5th November 2013

BANGO PLC

("Bango")

Business Update

Continued momentum with additional Google Play launches and geographic & platform expansion

New York and Cambridge - Bango (AIM: BGO), the mobile web payments and analytics company, is pleased to provide an update on the progress of its business.

Integrations with the Bango Platform

Google Play

In September 2013, Bango announced in its Interim Results statement that Google Play daily end user spend entered the top three of Bango's end user spend sources with its first and sole live connection. Bango also noted that it expected other Mobile Network Operators (MNO) to become active in the coming months. Bango is now pleased to be able to announce the integration with Rogers Communications and Fido, mobile wireless providers in Canada, with Google Play is now live. A staged rollout is in progress and transaction volumes are growing.  Bango currently expects to integrate at least five further operators with Google Play. These integrations have been agreed and are expected to become active in the coming months, in each case subject to successful completion of testing.

This indicates significant progress for Bango in its plan to integrate operators into Google Play, building on the success of the integration for Telstra in Australia in December 2012.

Bango expects to deliver further operator connections into Google Play in the coming year, in addition to those live and already agreed, as Android continues to forge ahead in the connected device market and other MNOs around the world leverage their existing Bango Payments Platform integrations or become new Bango-integrated MNOs.

Bango customers make the decision to announce their use of Bango technology, and unless permitted by the customer, until that time Bango does not speculate on the identity of any customer that has been won, is in test or has live transactions underway.

The Board believes it is too early to forecast the level of business from its further relationships with Google Play while MNOs are in the early stages of rolling out live connections through Bango.

Country expansion

During September and October 2013, Bango completed integrations with MNOs in a number of markets in Asia, including DTAC in Thailand and Globe in the Philippines and in the Middle East with Etisalat. These connections are initially being used for Blackberry App World or Windows Marketplace transactions.

Singapore office opened to support Asia rollout

Bango management believes that the success of Bango in integrating MNOs through a common platform with added value in the areas of management, identity and analytics is proving an attractive proposition.

Asia is proving to be an area of significant opportunity, mirroring the interest by Bango app store customers in entering that region and the remarkable sales increases of up to 10x that result from adding mobile operator billing in regions where credit cards are not widely used.

To support the healthy pipeline of dozens of opportunities in the region, either for an initial integration with Bango or for channeling more transactions through existing integrations, Bango has established an office in Singapore to serve as a regional hub for business development activity close to the regional hubs for our app store partners.

End User Spend

As expected, end user spend growth continued from Q2 to Q3 2013, with October data also showing a continuing upward trend. While Blackberry App World spending is providing an increasing contribution to gross profit, it is the spending in other app stores that is expected to be the primary driver of growth in 2014.

Outlook for 2014

Bango management believes the outlook for the coming year is extremely positive. Areas from which Bango expects to benefit include additional successful Google Play integrations; the first wave of HTML5 games being marketed through Facebook, which will have a direct billing relationship with Bango; and a general increase in Microsoft and HTML5 business driven by organizations such as Mozilla and its Firefox Marketplace. The relationship with Amazon continues to progress well and while timing continues to be unpredictable Bango is confident it will also deliver significant value in the long term.

Broadening the reach of the Bango Platform

Bango uses its BillRank technology to offer the best payment method for each individual transaction, based on previous user interactions, content type, mobile operator regulations and cost of billing parameters. More than 95% of the time this results in a mobile operator billing transaction, but other methods of payment may be more appropriate in some cases. For example in Venezuela, credit card is the best route for money collection.

Bango recently partnered with MMIT, an African-based mobile payment software developer to Create M-Iflọ. The jointly developed M-Iflọ solution is a billing mechanism and verification portal for digital wallets, specifically designed to fit the cash-exchange culture of Africa. It offers reliability and security to app stores and digital merchants, providing millions of people in Africa with the ability to make mobile payments for apps, games and other smartphone content. M-Iflọ offers a much needed solution to the complexities of mobile content consumption in Sub-Saharan Africa and provides the reassurance of up-front payment to app stores and other digital merchants seeking to launch in the region.

While most Bango transactions relate to app stores, which are expected to be the biggest channel for mobile content in the next year or so, a number of companies are looking to provide services alongside the app stores - especially where these are streamed or cross device - where an app store is not necessarily the best means of distribution/billing. Bango is able to work with these companies to increase their geographic reach and their penetration of the mobile consumer market.

In October, Bango announced a partnership with SyQic, the leading Mobile TV Service to provide frictionless payment for its Yoonic platform of live and on-demand international video content. Integration with the Bango Platform allows global users of the Yoonic service to securely purchase a wide range of international videos on mobile, while widening the coverage of addressable customers for Yoonic. This is due to Bango's ability to process a wide variety of payment methods and its geographical service footprint. The service is expected to go live in late November 2013.

Market Background

In July 2013, the Google Play store contained over 1 million apps and saw in excess of 50 billion downloads of digital content, such as music, books, movies and apps. Operator billing is emerging as a vital enabler, using the mass market of phone and phone bill to democratize access to such a wide-range of digital content. Bango connects mobile operator billing systems to Google Play and other industry leading app stores, to enable easy payment for digital goods either on users' phone bills.

The increase in sales of connected devices - smartphones, tablets and connected TVs - has seen an explosion in digital content. The universe of apps, movies, books and music, accessed from ever more affordable devices, continues to grow at rapid rates. Smartphone shipments are expected to reach 958.8 million units by the end of 2013, up from 722.5 million units in 2012, driven by demand for mobile data as handheld computing spreads across both developed and emerging markets (source: IDC Worldwide Quarterly Mobile Phone Tracker June 2013).

Ray Anderson, CEO of Bango plc, commented, "Bango is delighted to have enabled millions more new Google Play users to experience the benefits of smooth mobile operator billing by completing these new operator integrations.

"Android's market share has increased dramatically and as user numbers soar, we are seeing an increasing flow of developer talent and compelling content channeled through Google Play. Operator billing from Bango will boost conversion rates and developer monetization.

"Bango creates a platform effect for its partners, which alongside our IP, cannot be replicated. Insight derived from each user's BangoID, alongside its innovative technology leads to more successful mobile payments than by any other method. Bango now has over 120 direct and live operator connections and more than 200 million authenticated 'billable' identities.

"With a stable and strong technology platform and great business partners Bango enters 2014 with a really strong pipeline of opportunities and the team to deliver on that opportunity."

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About Bango

In the era of mobile technology, collecting payments has emerged as a central and complex challenge. Bango (AIM: BGO) powers payment and analytics on the mobile web, providing users with a massively smooth payment experience.

Bango's pervasive presence across the web creates a platform effect for partners, identifying hundreds of millions of users and maximizing the number of one click payments. Global leaders plugging into Bango include Amazon (NASDAQ: AMZN), BlackBerry World (NASDAQ: BBRY), Facebook (NASDAQ: FB), Firefox Marketplace, Google Play, Windows Phone Store (NASDAQ: MSFT) and major mobile brands including CNN, Cartoon Network and EA Mobile. Visit: bango.com